UK house price growth steady at 2.5%
House prices increased 2.5% year-on-year in November, the same rate of growth as seen in October. Inflation was forecast to rise to 2.7%.
On a monthly basis, house price inflation slowed to 0.1%, in line with forecast, from 0.2%.
Low mortgage rates and healthy rates of employment growth are providing support for demand, but this is being partly offset by pressure on household incomes, which appears to be weighing on confidence, Robert Gardner, Nationwide's chief economist, said.
The lack of homes on the market is providing support to house prices, Gardner added. The economist said the decision to abolish the stamp duty for the first time buyers is likely to have only a modest impact on overall demand. ■